TUESDAY FX OUTLOOKS:- RUPEE IN RANGE, DOLLAR UP, MAJOR FX IN RANGE !!!

USDINR

The Domestic Unit (Rupee) most likely to commence Tuesday session between range of 82.20 – 82.30 levels against greenback as strengthened after a survey from the Federal Reserve showed U.S. banks reported tighter credit standards and weaker loan demand during the second quarter, a sign rising interest rates are having an impact on the economy.

USDINR TECHNICAL

Day Trend: - BUY ON DIP

Weekly Trend: - BUY

INTRADAY RANGE – 82.40 (82.30 – 82.21) 82.11

THE FOREX MARKET

• The U.S. unemployment report for June on Friday will likely be strong while next week's Consumer Price Index (CPI), also for June, may show the pace of inflation increasing for the first time from a year ago.

• The euro retreated from early gains after data showed economic growth in Europe nudged higher and inflation ticked lower. The euro earlier rose after data showed euro zone inflation fell further in July, while the bloc returned to growth in the second quarter of 2023 with a greater-than-expected expansion.

• The yen extended losses after the Bank of Japan (BoJ) last week loosened its grip on interest rates, but the currency posted its first monthly gain against the dollar since March. The BoJ's policy of keeping yields pinned down has weighed heavily on the Japanese currency for the past year, and fresh intervention on Monday showed it could continue to do so.

• China's manufacturing activity fell for a fourth straight month in July, though the China-exposed Australian dollar and Chinese shares were buoyed by news of further measures to spur the country's sputtering economic recovery.

• Sterling fell 0.12% at $1.2829, ahead of the Bank of England's policy meeting on Thursday. Markets are evenly divided between a 25- and 50-basis-point increase.